House Oversight expands prediction-market insider trading probe to Hyperliquid, Crypto.com, and PredictIt
House Oversight Committee Chair Comer has expanded his investigation of insider trading on prediction markets to include Hyperliquid Labs, Crypto.com, and Aristotle Exchange Inc., the owner of PredictIt, according to letters first shared with CNBC. The probe targets potential misuse of non-public information in event-contract markets. Comer previously focused the investigation on Polymarket and Kalshi. The committee is requesting documents and identity-verification records from the additional platforms. The expansion signals broader congressional scrutiny of compliance practices across both crypto-native and traditional prediction-market venues.
The probe widens the regulatory spotlight from Polymarket and Kalshi to crypto-native venues that have operated with lighter congressional scrutiny. Hyperliquid and Crypto.com now face document demands that could expose how they monitor wallet-linked trading and whether their compliance stacks match registered-exchange standards. PredictIt risks a new front of attack just as its federal litigation hangs in balance.
The timeline is election-cycle driven: Comer can haul CEOs for hearings before November, forcing platforms to choose between rapid disclosure or defiance that plays badly on camera. No prediction market operator can assume House interest stops at one platform; the precedent of a successful document sweep becomes the template for the next chairman to copy. The first platform whose records reveal gaps in trade surveillance becomes the poster child for whatever legislative fix Comer drafts.
Polymarket and Kalshi now face parallel federal and state scrutiny on multiple fronts, joining the New York gambling-authority fight and six-state contract halt orders already in motion.